Labor to wipe $3bn from Hecs and Help debts through indexation changes

Measure to ensure student debts can’t outpace wage growth by retrospectively capping indexation rate for loans

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The federal government will cut around $3bn in student debts through a key change to the Hecs and Help programs, reversing last year’s horror indexation hike and delivering a $1,200 saving for the average person.

The measure, to be outlined in this month’s federal budget, will ensure student debts can’t outpace wage growth in the future by capping the indexation rate for Hecs and Help loans.

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